MUMBAI: Government today said it has modified the FM Phase-II policy guidelines to promote the growth of radio business.
“The clause 8.3 of FM Phase-II policy guidelines on expansion of FM broadcasting services through private agencies has been modified in September last year,” Information and Broadcasting Minister Anand Sharma said in a written reply in Rajya Sabha, says a PTI report.
The aim was to promote the growth of radio business in view of requests of applicant companies seeking change in shareholding pattern for purposes of demerger or amalgamation of radio business.
Sharma said the modified policy allows the ministry to grant permission to FM broadcasting companies for creation of subsidiaries, merger/demerger/amalgamations of companies by way of transfer of shares within the period of five years from the date of operationalisation of the channel.
But, he added, it is subject to the condition that the majority shareholders would continue to remain as majority shareholders/promoters and they should hold at least 51 per cent of the total shares.